Tue, Mar 29, 2011 - Page 11 News List

Acer shares suffer biggest one-day fall in two weeks

TSUNAMI AFTERMATH:Shares in Asustek and Compal Electronics fell 5.7% and 5.2% respectively, as the market showed growing concern over potential supply shortages


Shares in Acer Inc (宏碁), the world’s second-largest maker of PCs, slumped 6.9 percent to NT$67.8 by close of trading yesterday after the company lowered its forecast for first-quarter sales, the biggest intraday decline since March 15.

The benchmark TAIEX dropped 0.5 percent.

First-quarter revenue from PCs looks set to fall about 10 percent from the previous three months because of “relatively weaker” demand in Western Europe and the US, Acer said on Friday.

The company said second-quarter sales are expected to be roughly the same as the current quarter, an outlook that Daiwa Capital Markets analyst Calvin Huang (黃文堯) attributed to possible supply disruptions caused by the earthquake in Japan.

“We believe the disruption to supplies is the major reason behind its conservative view” for the second quarter, Huang wrote in a report on Friday. The Hong Kong-based analyst cut his recommendation for Acer from “hold” to “sell.”

Acer spokesman Henry Wang (汪島雄) did not immediately return three calls seeking comment to his office and mobile telephones or respond to an e-mail. Last month, Wang said first quarter shipments and sales would rise 3 percent from the previous three months.

Meanwhile, shares in Asustek Computer Inc (華碩電腦) fell 5.7 percent, and Compal Electronics Inc (仁寶電腦) dropped 5.2 percent, as Huang said they are among the electronics companies that could be forced to cut forecasts as a result of possible component shortages.

“Acer could be just the first shock in the Taiwan notebook sector,” Huang said.

Separately, Acer’s board nominated Julian Horn-Smith and F.C. Tseng (曾繁城) as independent directors, the company said in an e-mailed statement.

Horn-Smith is a former deputy CEO of Vodafone Group and Tseng is the vice chairman of Taiwan Semiconductor Manufacturing Co (台積電), the statement said. Shareholders will vote on the appointments at a meeting to be held in Taipei on June 15, it said.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top